Independent financial advice site Fool.co.uk has stated that a cash mini-ISA is the best form of saving account for consumers.
Such accounts pay tax-free interest at “headline rates” according to the advisor.
With a cash mini-Isa, one-fifth of the interest earned doesn’t go to tax as it does on other savings accounts.
Only £3,000 per year is allowed to be put into a cash mini-Isa, so it is useful to consider the best savings accounts besides these.
After a cash-mini Isa, the best savings account for consumers is the Birmingham Midshires Internet Easy Access account, according to Fool.co.uk.
This account features a generous interest rate of 5.20 per cent AER and has a maximum balance of £5 million.
Things are improving for savers generally, as many are forecasting the base rate of interest to rise to five per cent in November.
Inflation, driven by skyrocketing energy prices, now stands at 2.5 per cent.
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